The Federal Government, in collaboration with key Nigerian banks, has unveiled plans to attract $20 billion in diaspora funds as part of a broader strategy to strengthen foreign exchange reserves, support infrastructure development, and drive economic recovery. The initiative, which forms a major component of the government’s economic stabilization plan, seeks to leverage remittances and diaspora investments as sustainable sources of external financing amid volatile global markets and fluctuating oil revenues.
According to top government officials, the move aligns with President Bola Tinubu’s economic diversification agenda, which prioritizes the mobilization of private capital and diaspora resources to complement public sector funding. The government aims to channel a significant portion of the targeted $20 billion into critical sectors such as power, housing, agriculture, manufacturing, and technology, while also expanding financial inclusion through innovative investment instruments tailored for Nigerians living abroad.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the plan during a meeting with representatives of the Central Bank of Nigeria (CBN), the Nigerian Diaspora Commission (NiDCOM), and managing directors of major financial institutions in Abuja. He emphasized that diaspora remittances represent one of the most reliable and consistent sources of foreign exchange inflow to Nigeria, surpassing oil revenues in certain years.
“Diaspora Nigerians are among our most valuable economic assets. They contribute not only through remittances but also through investments, knowledge transfer, and international partnerships,” Edun said. “Our goal is to harness these funds in a structured, transparent, and rewarding way that benefits both investors and the Nigerian economy.”
He explained that the government is developing a framework that will allow Nigerians abroad to invest in diaspora bonds, infrastructure funds, and savings instruments with attractive returns. The instruments will be backed by guarantees from the Federal Government and supported by the CBN to ensure liquidity and investor confidence.
The Managing Director of a leading commercial bank, who attended the meeting, revealed that several financial institutions are already designing diaspora-targeted investment products, including dollar-denominated fixed deposits and mutual funds that can be easily accessed through digital platforms. “We are working with the government to create credible channels for diaspora Nigerians to invest directly in key sectors of the economy,” the executive said. “Transparency, ease of access, and security of investment are our top priorities.”
Data from the World Bank and the International Monetary Fund (IMF) show that Nigeria currently receives between $20 billion and $24 billion annually in remittances from its diaspora community, the largest in Africa and among the top 10 globally. However, experts note that only a small fraction of these inflows is directed into productive investments, with the majority going into household consumption.
The new initiative aims to change that trend by offering structured investment opportunities that contribute to national development while generating returns for investors. To facilitate this, the government plans to establish a Diaspora Investment Fund (DIF) that will serve as a central platform for pooling and managing investments from Nigerians abroad.
Chairman of the Nigerian Diaspora Commission, Abike Dabiri-Erewa, commended the initiative, describing it as a “timely and strategic policy” that recognizes the critical role of the diaspora community in national development. “Our diaspora citizens have consistently shown commitment to Nigeria’s progress. This initiative provides them with a credible avenue to participate directly in the nation’s economic growth story,” she said.
Dabiri-Erewa disclosed that NiDCOM is already working with the Ministry of Finance and the CBN to simplify regulatory requirements for diaspora investors and to enhance digital channels for seamless remittance transfers. She also mentioned plans to introduce diaspora investment roadshows across major global cities such as London, New York, Toronto, and Dubai to engage potential investors.
Financial analysts have welcomed the move, saying it could help stabilize Nigeria’s foreign exchange market if properly implemented. Dr. Andrew Eke, an economist and investment analyst, said: “If the government and banks succeed in mobilizing $20 billion in diaspora funds, it will ease pressure on the naira, improve liquidity, and support infrastructure spending. The key will be ensuring transparency, competitive returns, and investor protection.”
The Central Bank of Nigeria has also pledged its support, noting that diaspora inflows have remained a critical part of Nigeria’s balance of payments. In a statement, the apex bank said it is developing new regulatory frameworks that will streamline remittance processes, enhance data tracking, and ensure that funds are channeled into productive sectors.
CBN Governor Olayemi Cardoso emphasized that attracting diaspora funds aligns with the bank’s broader monetary policy objectives of strengthening reserves and stabilizing the exchange rate. “We are working closely with financial institutions to provide efficient remittance systems, transparent reporting, and investor-friendly instruments that guarantee confidence in the Nigerian financial system,” he said.
To further encourage participation, the government is considering tax incentives and investment guarantees for diaspora investors who commit funds to strategic national projects. The incentives may include reduced withholding tax on investment income, access to government-backed insurance, and simplified repatriation procedures for profits and dividends.
The diaspora funding initiative also ties into Nigeria’s long-term National Development Plan (2021–2025), which projects the mobilization of over $2.3 trillion in private and foreign capital to finance infrastructure and industrial expansion.
As consultations continue, the government is optimistic that the $20 billion diaspora funding target will be met within the next two years. Stakeholders believe that if successfully implemented, the initiative will not only strengthen Nigeria’s macroeconomic stability but also deepen financial integration, stimulate job creation, and enhance investor confidence in Africa’s largest economy.
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